The Gold level indicator, as the name suggests, is a useful tool for trading gold. When trading gold, it provides an ideal entry and exit point. Based on market behavior, the indicator recommends appropriate buy and sell points. All you have to do is find the pivot point and wait for the market to reach the buy or sell points, then confirm the signals and pick your trades.
The Gold Level indicator is suitable for scalping and long-term trading strategies and works well on any timeframe. Whilst you can use it on currency pairs, it is best suited for gold trading.
What is the Gold Level Indicator?
It is fairly simple to use the Gold Level indicator. It shows the pivot, buy, and sell points. The pivot is the focal point of your trade. Simply look to buy when the market reaches the buy level and sell when it reaches the sell level.
The indicator provides up to six target (profit) levels. This means you’ll have six buy targets (BT1, BT2, BT3, BT4, BT5, and BT6) and six sell targets (ST1, ST2, ST3, ST4, ST5, and ST6). The target levels are designed to accommodate various types of traders. If you are a scalper, the first buy target (BT1) and sell target will appeal to you. Depending on risk tolerance, the target levels are suitable for day traders, whereas the high target levels are suitable for swing trading and long-term traders in general.
Gold Level Strategy
The Gold Level Strategy, which is designed for trading gold, is quite easy to understand and apply alongside price action. In this strategy, the pivot is essentially the center stage from which you should be observing price movement in order to capitalize on a trading opportunity. If the market moves above the “buy” line, it indicates a buy opportunity. When the price crosses the sell-line, it indicates a sell opportunity.
Buy Signal
The following could be your checklist for a buy trade:
- When the market is in an uptrend.
- When price hits the buy point of the indicator.
Once these two events occur:
- You could open a buy position after the bullish signal is observed and you get your signal confirmation.
- You could set your stop loss just below the nearest swing low.
- You could set your take profit at the nearest resistance zone.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Sell Signal
The following could be your checklist for a sell trade:
- When the market is in a downtrend.
- When price hits the sell point of the indicator.
Once these two events occur:
- You could open a sell position after the bearish signal is observed and you get your signal confirmation.
- You could set your stop loss just above the nearest swing high.
- You could set your take profit at the nearest support zone.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Gold Level Pros & Cons
Pros
- The Gold Level Indicator gives entry signals and multiple take profit targets.
- The indicator can be used by both short-term and long-term traders, and on any timeframe.
Cons
- The Gold Level Indicator is designed primarily for trading gold only.
- Pivots play an important role in this strategy, hence some additional knowledge of price action is required.
Conclusion
One of the indicators designed for specific assets is the Gold Level Indicator. In this case, the indicator is for gold traders. In addition to providing buy and sell signals, the indicator goes a step further and provides multiple profit targets. It includes several target levels to accommodate both scalpers and long-term traders. Having knowledge of price action would also be advantageous when using this indicator whilst you should always be using sensible money management to try and control risk whilst getting the most out of your trades.
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